Category Archives: Bookkeeping

Regular audits and reconciliations can help identify and rectify these omissions, ensuring that all transactions are accounted for. Even with meticulous attention to detail, posting errors can occur, potentially compromising the accuracy of financial records. For example, recording a capital expenditure as an operating expense can distort financial statements and mislead stakeholders. To correct this, […]

Shareholders, or owners of stock, benefit from limited liability because they are not personally liable for any debts or obligations the corporate entity may have as a business. Shareholders’ equity comes from corporations dividing their ownership into stock shares. However, each partner generally has unlimited personal liability for any kind of obligation for the business […]

They also make capital-intensive investments more attractive because the higher the investment in depreciable assets, the greater the potential tax shield. Depreciation tax shield is the reduction in tax liability that results from admissibility of depreciation expense as a deduction under tax laws. It should be noted that regardless of what depreciation method is used […]

The QuickBooks Online comparison chart below highlights some of the key features of the five versions. We include in-depth, side-by-side comparisons of each plan against its next-level tier in the sections that follow. Advanced Inventory is included in the Platinum and Diamond subscriptions only. Small Business Resources Contractors should also select Plus to track the […]

They consist of long-term tangible property that businesses use to produce goods and services. This category includes physical items like land, machinery, buildings, vehicles, and equipment. Plant assets are a group of assets used in an industrial process, such as a foundry, factory, or workshop. These assets are classified as fixed assets if their cost […]

Between different clients and multiple tasks, you must be able to track all the information that you’re given and store it in a way that you can find it in a moment’s notice. Bookkeepers deal with a ton of different things daily, and there are skills that predispose people to success. Here are some traits […]

Wave software includes invoicing, but it’s not invoicing software — it’s accounting software. If you don’t need accounting software, the many features of Wave can be confusing. If you’re in the market for an invoicing solution, consider a simpler option. However, if your business needs budget-friendly accounting software, consider giving Wave a try. If you’ve […]

Conversely, if the market value per share exceeds BVPS, the stock might be perceived as overvalued. BVPS offers a baseline, especially valuable for value investors looking for opportunities in underpriced stocks. The difference between book value per share and market share price is as follows. As suggested by the name, the “book” value per share […]

After subtracting everything—including input costs, operating expenses, financing costs, and taxes—you arrive at the net income. A profit and loss (P&L) statement is a summary of an organization’s income and expenses over a period of time. The first step in creating a profit and loss statement is to calculate all the revenue your business has […]

A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. Our goal is to deliver the most understandable and comprehensive what is the difference between adjusting entries and closing entries explanations of financial topics using simple writing complemented by helpful graphics and animation videos. […]